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Faizan
With modern technology, business operations and transactions are faster and more convenient. This is especially beneficial in businesses that require efficient supply chain management. EDI or Electronic Data Interchange is one of the many innovative solutions for businesses today. Read on to learn more about it.
What is it?
EDI is the process of exchanging business documents between companies through computers. In simpler words, it enables the computer system of a company to talk and exchange data with a computer system of another company. While many companies are still using fax machines and traditional mailing, ED interchange can be much faster.
How does it work?
When people enter purchase orders into their computer, their order goes through a batch of interface programs. These programs edit the orders and then send them to the EDI intermediate files. At this point, the purchase orders are translated into the EDI standard format that the software can understand. The translation software can work with some programs, which allow the receiver's computer the ability to read the orders. Still on the same format, the orders are now on the receiver's computer. Its modem can then transmit the purchase orders into a value added network. This network translates the original sender's form for the receiver to read and understand the received document.
What are its advantages?
Paper-based orders may take 10 to 14 days from the time the buyer requests it to the time the shipper sends it. With ED interchange, such orders can be processed within a day. The faster transaction time is also helpful in maintaining inventory levels. Businesses can also have better use of their warehouse spaces and may prevent out-of-stock problems.
Other than faster communication, computer-to-computer exchange is also a cost-saving solution for many companies. It is lower-cost than the usual methods of document exchange. To exchange documents, EDI may cost $1 or less while traditional paper purchase order may cost up to $70 per exchange.
Solutions from EDI companies also help clients to have lesser chances for human error. As the processing of the documents is automated, there is more accuracy.
EDI services can also help companies to have closer relationship and partnership with other companies. More importantly, it can help improve productivity and business control. As a result, you can get a competitive advantage over your business rivals.
How do you choose the right service?
Many options are now in the market. Make sure, however, that you don't end up paying more for the services that you need. You may get help from a consultant to sort through the available options. Consultants may also help you to create a list of the EDI services that your business requires. This way, it is easier to find the best service provider. Take into account your budget as well.
What is it?
EDI is the process of exchanging business documents between companies through computers. In simpler words, it enables the computer system of a company to talk and exchange data with a computer system of another company. While many companies are still using fax machines and traditional mailing, ED interchange can be much faster.
How does it work?
When people enter purchase orders into their computer, their order goes through a batch of interface programs. These programs edit the orders and then send them to the EDI intermediate files. At this point, the purchase orders are translated into the EDI standard format that the software can understand. The translation software can work with some programs, which allow the receiver's computer the ability to read the orders. Still on the same format, the orders are now on the receiver's computer. Its modem can then transmit the purchase orders into a value added network. This network translates the original sender's form for the receiver to read and understand the received document.
What are its advantages?
Paper-based orders may take 10 to 14 days from the time the buyer requests it to the time the shipper sends it. With ED interchange, such orders can be processed within a day. The faster transaction time is also helpful in maintaining inventory levels. Businesses can also have better use of their warehouse spaces and may prevent out-of-stock problems.
Other than faster communication, computer-to-computer exchange is also a cost-saving solution for many companies. It is lower-cost than the usual methods of document exchange. To exchange documents, EDI may cost $1 or less while traditional paper purchase order may cost up to $70 per exchange.
Solutions from EDI companies also help clients to have lesser chances for human error. As the processing of the documents is automated, there is more accuracy.
EDI services can also help companies to have closer relationship and partnership with other companies. More importantly, it can help improve productivity and business control. As a result, you can get a competitive advantage over your business rivals.
How do you choose the right service?
Many options are now in the market. Make sure, however, that you don't end up paying more for the services that you need. You may get help from a consultant to sort through the available options. Consultants may also help you to create a list of the EDI services that your business requires. This way, it is easier to find the best service provider. Take into account your budget as well.
Posted in: business
